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Exhibit 99.4
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma financial information give effect to Biolabs,
Inc.'s ("Biolabs") investment in Prion Developmental Laboratories, Inc.
("Prion") on September 8, 2000 in which it acquired a 14.29% equity interest and
the proposed additional equity investment to take place no later than December
31, 2000 under which Biolabs will purchase an additional 10.71% equity interest
in Prion to bring its total equity interest to 25%. The pro forma statement of
operations for the nine months ended September 30, 2000 is based on historical
results of operations of Biolabs for the nine months ended September 30, 2000
and the historical results of Prion for the eight months ended August 31, 2000.
The following pro forma financial information consisting of the pro forma
balance sheet and statement of operations and the accompanying notes should be
read in conjunction with and are qualified by the historical annual and
quarterly financial statements and notes of Biolabs.
The pro forma financial information is presented for illustrative purposes only
and is not necessarily indicative of the future results of operations of Biolabs
after its investment in Prion.
<TABLE>
<CAPTION>
Historical Pro-Forma
Balance Sheets Pro-Forma Adjustments Balance Sheet
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<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,208,573 $(1,000,000)(A) $ 1,208,573
Amounts receivable 19,643 19,643
Prepaid expenses 18,545 18,545
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2,246,761 1,246,761
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DEPOSIT ON PURCHASE 50,000 50,000
INVESTMENT IN I.D. CERTIFY, INC.
- preferred shares 800,160 800,160
LONG-TERM INVESTMENT IN:
Prion Developmental Laboratories, Inc. 1,000,010 1,000,000 (A) (271,068)(B) 1,728,942
Biomedical Diagnostics, LLC 2,619,781 2,619,781
Biotherapies Incorporated 2,835,000 2,835,000
OFFICE EQUIPMENT, - net 14,507 14,507
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$ 9,566,219 $ 9,295,151
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LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 27,216 $ 27,216
Promissory notes payable - shareholder 3,033,791 3,033,791
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3,061,007 3,061,007
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STOCKHOLDERS' EQUITY
Preferred stock 141 141
Common stock 972 972
Additional paid in capital 11,018,542 11,018,542
Accumulated deficit (4,514,443) 271,068 (B) (4,785,511)
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$ 9,566,219 $ 9,295,151
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</TABLE>
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<TABLE>
<CAPTION>
Historical Pro-Forma
Operations Pro-Forma Adjustments Operations
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<S> <C> <C> <C>
REVENUE $ 0 $ 0
EXPENSES
Depreciation 4,596 4,596
Finders fee 200,000 200,000
General and administrative 187,100 187,100
Interest 185,334 185,334
Investor relations 200,650 200,650
Management and consulting fees 331,195 331,195
Professional fees 260,418 260,418
Travel and promotion 128,301 128,301
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1,497,594 1,497,594
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LOSS BEFORE OTHER ITEMS (1,497,594) (1,497,594)
Interest and miscellaneous income 33,717 33,717
Equity in loss of affiliates (190,033) (271,068)(B) (461,101)
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NET LOSS $(1,653,910) $(1,924,978)
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LOSS PER COMMON SHARE (0.20)
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SHARES USED IN COMPUTING
LOSS PER SHARE 9,721,375 (C)
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</TABLE>
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NOTES TO THE UNAUDITED PRO FORMA FINANCIAL INFORMATION
Pro Forma Adjustments and Assumptions
The pro forma information herein gives effect to the following transactions:
On September 8, 2000, Biolabs acquired an 14.29% equity interest in Prion.
Consideration for the investment was $1,000,010. Under the terms of the
agreement, Biolabs committed to invest a further $1,000,000 on the later to
occur of September 30, 2000, or Prion's execution of research agreements with
certain universities, upon the condition that such research agreements be
executed no later than December 30, 2000. The additional investment of
$1,000,000 will increase Biolabs equity interest in Prion by 10.71% to a total
equity interest of 25%. These pro forma statements assume performance milestones
under the Investment Agreement will be met and the additional investment of
$1,000,000 will be made by Biolabs. It is further assumed that the 25% equity
interest gives Biolabs the ability to exercise significant influence over Prion
and therefore the equity method of accounting for the investment in Prion is
appropriate.
The following table sets forth the allocation of the purchase price for the
investments included in the pro forma financial information:
<TABLE>
<CAPTION>
14.29% 10.71% TOTAL (25%)
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<S> <C> <C> <C>
Working capital acquired $ (6,107) $ 102,523 $ 96,416
Goodwill 1,006,107 897,477 1,903,584
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Purchase price $1,000,000 $1,000,000 $2,000,000
---------- ---------- ----------
</TABLE>
The valuation of the actual intangible assets acquired in the investment in
Prion has not yet been completed. When completed certain amounts which have been
allocated to goodwill in the above table may be allocated to in-process research
and development and other identifiable intangible assets.
(A) The pro forma adjustment reflects the purchase of an additional
10.71% equity interest in Prion for $1,000,000 as committed to by
Biolabs under the terms of the Investment Agreement.
(B) The pro forma adjustment is to record $271,068 in amortization of
goodwill that would have been recorded during the fiscal year. The
amounts identified as goodwill in Biolabs investment in Prion are
being amortized on a straight-line basis over a seven year period.
No other adjustment has been made to record Biolabs' 25% equity in
Prion's operations as the Prion has yet to commence its operating
activities.
(C) The basic loss per common share is computed by dividing the loss
available to common shareholders by the weighted average number of
common shares outstanding. The calculation of the weighted average
number of common shares outstanding assumes that the 9,721,375
common shares of Biolabs outstanding on September 30, 2000 were
outstanding for the entire period.
